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FTSE Russell has classified 10 Nigerian companies as newly eligible for its Frontier Index Series ahead of Nigeria’s September 21 re-entry.
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Nigeria’s return ends a three-year exclusion after the country was downgraded to “Unclassified” over FX illiquidity and difficulties repatriating foreign capital.
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Analysts expect the reclassification to improve global visibility, attract foreign portfolio investment and boost liquidity on the Nigerian Exchange.
September 04, (THEWILL) — FTSE Russell has added 10 Nigerian companies to its Frontier Index Series, paving the way for Nigeria’s official return to global Frontier Market status on September 21, 2026.
The development was contained in FTSE Russell’s September Index Review, following the index provider’s decision to restore Nigeria’s market classification after three years as an “Unclassified Market”.
The 10 companies classified as “Newly Eligible” large-cap stocks are Aradel Holdings, Dangote Cement, First HoldCo, Guaranty Trust Holding Company, MTN Nigeria Communications, Nestlé Nigeria, Nigerian Breweries, Presco, Stanbic IBTC Holdings and Zenith Bank.
Nigeria ends three-year exclusion
FTSE Russell’s Frontier Index Series tracks large-, mid- and small-cap companies across frontier and emerging markets and serves as a benchmark for international investors and fund managers.
Nigeria’s reclassification ends a period of exclusion that began in September 2023, when FTSE Russell moved the country to “Unclassified” status because of severe foreign exchange illiquidity and persistent delays faced by foreign investors seeking to repatriate capital and dividends.
The turnaround began in October 2025 when FTSE Russell placed Nigeria on its Watch List following improvements in foreign exchange liquidity and mechanisms for capital repatriation.
However, the reclassification process faced another hurdle in June 2026 after Nigeria moved from a T+2 to a T+1 equity settlement cycle.
The transition raised concerns among international investors over the possibility of additional prefunding requirements for Nigerian equity transactions.
Stakeholders resolve T+1 concerns
The Nigerian Exchange Group, Securities and Exchange Commission, global custodians and foreign asset managers subsequently engaged to address the concerns.
At a stakeholder meeting in London in July, NGX Group reassured international custodians about the operational readiness of Nigeria’s T+1 settlement framework.
The engagements helped clear the remaining concerns, with FTSE Russell issuing its final confirmation on August 27.
The return to the Frontier Index is expected to improve the visibility of Nigerian equities among international investors and potentially increase foreign portfolio investment and trading liquidity on the Nigerian Exchange.
The reclassification could also make Nigerian stocks more accessible to international funds that track FTSE Russell benchmarks or use them as part of their investment strategies.
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Dangote Cement targets London investors
The FTSE Russell development coincides with preparations by Dangote Cement for greater international investor exposure.
Dangote Cement has announced plans to hold a Capital Markets Day in London on September 21, the same day Nigeria is scheduled to return to Frontier Market status.
The event follows shareholder approval of the company’s proposed secondary listing on the London Stock Exchange.
According to the company, the Capital Markets Day will give global institutional investors, analysts and other stakeholders an opportunity to engage directly with senior management.
The briefing will also provide updates on Dangote Cement’s strategy, operations, expansion plans and business priorities.
The company said further details on the agenda and logistics would be released in due course.
The simultaneous return of Nigerian equities to FTSE Russell’s Frontier Index and Dangote Cement’s planned London investor engagement could provide greater international exposure for Nigerian assets as the market reopens to a broader pool of global investors.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
